Beware “nosebleed” valuations, says Mauldin

John Mauldin of Millennium Wave Investments says (via Yahoo Finance – Tech Ticker) long-term investors should ignore the temptation to get a piece of the stock market action. In his view there is only one metric to consider: valuations. At this moment, stocks are too rich for his blood – “nosebleed” is the term he used.

Mauldin said: “There’s lot of other things you can do while you’re waiting for valuations to come down.” According to Yahoo Finance – Tech Ticker, his recommendations include fixed-income and dividend-yielding utility stocks. He also thinks buying real estate for rental income is a smart move now that housing prices have come down so dramatically.